New from Prudential: Level Term Life to Age 65

A study conducted by the Employee Benefit Research Institute shows that Americans are more unprepared for retirement than they believe.

Survey results show that 27 percent of Americans have devoted less than $1,000 to retirement savings – excluding the value of their home and defined-benefit plans. Those who have saved between $25,000 and $99,999 for retirement accounted for 23 percent of participants. Another 11 percent of participants have saved more than $250,000.

Less than 50 percent of survey participants showed concern about their retirement preparedness and three-fourths were very or somewhat confident they would have sufficient funds to pay for retirement expenses.

The study shows that age is a large factor in retirement savings, with young workers being less prepared financially than older workers with a longer work history and those who may be married.

It’s wise to set up a retirement strategy sooner rather than later so you can be better prepared for your future. The following tips will help you spend less now with an accountable savings plan:

Know your monthly expenses and create a budget

Use credit cards only if you can pay off the balance at the end of every month

Designate 20 percent of your paycheck to be automatically deposited in a savings account or talk to your bank about transferring so much money per paycheck or month to a separate account

Pay off debt early; reduce payments as much as possible

Set up a direct deposit into a 401K or another retirement account

Purchase a life insurance policy before age and medical conditions progress

Build up an emergency savings account fund should always cover at least 6 months to a year worth of expenses

Many young people are not as diligent about retirement planning because they feel they have more time to save before retirement age. Young people may benefit from planning for retirement early by taking advantage of low premiums for life insurance and a company-matched 401(k).